It is a simple situation. USD (daily chart) is either in the bear flag that this looks like (rising for 5 days into resistance), or it is not. Giving support to the bear flag option is that volume on USD Bullish fund, UUP, is very light and diminishing. That is what a bear flag does, it rises in an orderly manner on low and/or declining volume. Much like a bull flag would bias downward in an orderly manner on declining volume.
This is particularly important now that gold and TSX-V have hit target, and silver and the gold miners (GDX) came fairly close. A flag breakdown here would likely help those markets and others generally anti-USD to regain their footing. If it is not a bear flag and USD takes out the SMA 50 and resistance our already building caution (given the target acquisitions noted above) would increase. Your move, Uncle Buck.
